Philips to hive off television arm

Former global leader hopes joint venture with Hong Kong’s TPV Technology will stem heavy losses Dutch consumer electronics group Royal Philips Electronics said it is to hive off its loss-making television arm into a joint venture as it reported a fall in quarterly profits. Philips, the world’s biggest lighting maker, is handing most of the TV arm over to Hong Kong’s TPV Technology. The monitor maker will own 70% of the venture, operating the business in most markets outside the US and China, with Philips owning the rest. Philips has an option to sell its 30% stake to TPV after six years. Once a global leader, Philips’ TV arm has been hit by fierce price competition from low-cost rivals and has run up losses of nearly €1bn (£880m) since the start of 2007. “Finding a solution for our television business was our top priority and we strongly believe that the intended 30 joint venture with TPV that was announced today will enable a return to profitability for the television business, and an increased portfolio focus for Philips in health and wellbeing,” said Frans van Houten, a restructuring expert who became chief executive on 1 April. The TV business made an €87m net loss in the first quarter, dragging down Philips’ profits to €138m. This was below analysts’ forecasts and compared with €201m a year ago. Group sales advanced 6% to €5.3bn. “We expect headwinds in 2011 due to the Japan tragedy, impacting our revenue and supply chain,” Van Houten added. Manufacturing sector Netherlands Julia Kollewe guardian.co.uk

Posted by on April 18, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.